'Market Manipulation Allegations' Center Director Kim Beom-su Appears at FSC...Silent on Prior Reporting Questions

Kim Beom-su, former chairman of Kakao, is appearing at the Financial Supervisory Service on the 23rd to be investigated regarding allegations of stock price manipulation related to the acquisition of SM Entertainment. Photo by Kang Jin-hyung aymsdream@

Regarding the allegations of stock price manipulation involving Kakao's SM Entertainment (SM), Kim Beom-su, head of Kakao's Future Initiative Center, appeared at the Financial Supervisory Service (FSS) on the 23rd.

Kim arrived at the FSS in Yeouido, Seoul, around 10 a.m. and said, "I will sincerely cooperate with the investigation." He did not respond to questions such as whether he had been previously informed about the stock price manipulation allegations or his thoughts on the claim that Kakao is facing its greatest crisis since its founding.

On this day, an unusual photo line was set up at the FSS, with the FSS explaining, "Considering the seriousness of the matter, we installed the photo line for the first time."

The FSS Capital Market Special Judicial Police (Special Investigation Unit) is expected to investigate the extent of former Chairman Kim's involvement in the SM stock price manipulation allegations.

Earlier, the FSS Special Investigation Unit requested arrest warrants from the Seoul Southern District Prosecutors' Office for three individuals, including Bae Jae-hyun, Kakao's Chief Investment Officer, on charges of violating the Capital Markets Act. On the 19th, the Seoul Southern District Court issued an arrest warrant for Bae, citing concerns over evidence tampering and flight risk.

According to the Special Investigation Unit, they are suspected of investing approximately 240 billion KRW in February to raise SM's stock price above the public tender offer price by HYBE, the rival in the SM management rights acquisition battle, with the intent to obstruct HYBE's public tender offer.

This investigation raises the possibility that the financial authorities' probe will expand to include former Chairman Kim and other top executives at Kakao.

This content was produced with the assistance of AI translation services.